Louisiana is a very rich state with poor people.
In the county of East Baton Rouge, Louisiana,
more than 19% of all residents live in poverty.
At the same time, many of the world's
largest oil and petrochemical companies are here.
In fact, the GDP of this one county
is larger than 94 countries in the world.
In the last 12 years, we've been a number one
or number two state for foreign direct investment,
which means more money from around the world is coming
through Louisiana than almost anywhere else in the country.
And you're like, okay, where is that money going?
It's not going to me. It's not going to my schools.
It's not going to my roads. So what's happening?
A main reason that money isn't reinvested
in these local communities is the massive tax exemptions
given to select companies operating here.
Beginning in the 1930s,
the Industrial Tax Exemption Program,
or ITEP,
allowed select large companies to escape property taxes.
The intent of the law really was to encourage manufacturers
either to locate here or expand their plants
and create new jobs.
And the idea was that you would get the exemption for 10 years.
At the end of the 10 years,
then that property would go on the tax rolls.
But as so often happens with government programs,
after more than 80 years,
ITEP exemptions were almost always approved for extension.
Predictably, large petrochemical companies
came to count on these massive property tax exemptions.
I like to call to order the regular meeting
for Thursday, November 15th.
Unlike other states, Louisiana excluded local communities
from having a say in the process.
Everything was decided
by the State Board of Commerce and Industry.
It was just rubber stamped
by the State Board of Commerce and Industry,
and there was no accountability,
verification of any job creation.
All in favor, indicate with an aye.
Aye. 00:02:15.260,00:00:00.000 Our local school system is experiencing a deficit.
Our school teachers have not received
any sort of raises for 10 years.
Then a network of churches and community organizers
began a campaign to bring public awareness
to the inner workings of ITEP.
It was allowed to go on for 83 years
because it wasn't in the light of day.
When the public knew about it, that's where the outrage came.
Monies that could be flowing directly into classrooms
and directly into communities and community centers
are somehow given as breaks
to those who really don't need a break.
Governor John Bell Edwards issued an executive order
changing how ITEP worked.
Now all exemptions are capped at 80%
of the property's value and they have to be approved
locally before going to the State Board.
We're actually going to allow the school board,
the police departments, the city councils,
they are now allowed to vote on the measures.
And so as president of
East Baton Rouge Federation of Teachers,
I received a seat at the table.
I implore you tonight to not make a decision
on what's best for jobs for Baton Rouge,
but what's best for the students
of the East Baton Rouge Parish school system.
Thank you.
Our boys and girls that we're educating today
will be a part of the working community one day.
And they should want to make sure that these students
are ready to take on the jobs that they will need them to do.
We love Exxon. I use their gas.
And my wife used to work there.
But it's time they put their big boy pants on
and run their company based on the profits
that they make.
We've got to fix this. This is broke.
Where do we draw the line?
It's important to have these businesses,
but are we sacrificing the children for that?
It's not the fault of Exxon.
They're doing their duty to their stakeholders.
What is not okay is that our politicians
and our government officials
are allowing things like this to happen.
In a dramatic first vote, East Baton Rouge narrowly voted
against a multimillion dollar tax exemption for ExxonMobil.
Please vote.
The motion fails.
After hours of debate,
the East Baton Rouge School Board
voted down a controversial tax break for Exxon last night.
It's the first time they've killed the exemption
since they've had the authority to vote on the issue.
But other counties in Louisiana were fearful
that large companies might pack up and leave.
So they approved several new exemptions.
And hopefully over time,
we find some common ground and common space.
Meanwhile, the petrochemical industry keeps pushing
to reverse the executive order.
The topic remains a key issue in elections.
No one said ITEP before three years ago.
And now people are talking about it.
They're developing opinions about it
because it's kind of just like bubbling up, I think.
It's just getting started.
And I think the real reform will start to come down the line.
We are not anti-business. We are not anti-manufacturing.
But we think everybody should pay
their fair share of property taxes
to support the good of a community.